For the employees of the company, this will be a distinctive social security benefit and a unique Staff Welfare Scheme as the employee contribution to NPS will be linked with a contribution by the company. Muthoot Finance Ltd in its capacity as Point of Presence (POP) will absorb certain applicable POP related transaction charges, according to a company statement.
NPS, a social security measure of the Government of India launched by the Pension Fund Regulatory Development Authority (PFRDA) has been approved by the Board of Directors of the Muthoot Group for implementation as an optional scheme for the employees.
This long-term retirement savings plan for the Indian citizens in the 18-60 age groups has the provision for regular pension at the end of the tenure.
While central and state government employees have to subscribe mandatorily, it's optional for others. The minimum annual contribution is Rs 6,000, which can be paid at once or in installments of at least Rs 500, the statement said.
"Retirement planning is a very important aspect of financial planning wherein one needs to save in order to enjoy the desired post-retirement lifestyle. Muthoot Finance has always been concerned about the welfare of its employees and this initiative would help build a retirement fund for our employees," said George Alexander Muthoot, Managing Director, Muthoot Finance.